Since the Bitcoin squeeze almost a week ago, many of the alt coins have been showing renewed signs of strength. With this optimistic order flow comes the development of broader bullish patterns that further suggest a recovery phase is in progress across the alt coin space. Although the environment is improving, some alt coins are clearly outperforming others. And BAT is one such alt coin deserving of your attention.
BAT/USD Chart Analysis.
Whether you believe in the fundamentals of BAT (Basic Attention Token) or not, the chart is now beginning to present a much more bullish tone compared to recent months.
To learn more about BAT from a fundamental perspective, listen to our recent podcast with expert Steve Lubka here.
There are two formations on this chart that make it compelling in terms of a broader recovery phase. The first is the inverted head and shoulders (left shoulder in mid January and head in early February). This formation is common at a market bottom and can be observed in other more prominent coins like LTC as well.
The second compelling feature is the higher low established at the .12 cent support level. This can be the beginning of a broader right shoulder. Keep in mind these cheap coins tend to be extremely noisy and often do not unfold in simple clear cut patterns so it makes sense to expect the right shoulder to linger for some time.
That means a retrace to the low .12 cent area is very reasonable. It may not sound like much, but a cheap coin like this is especially driven by news. If you are not paying “attention” and not positioned, by the time the news sparks the market, you will most likely miss the move.
This is why paying attention to the price action around support levels like .12 and the high .10s can offer some attractive buying opportunities. Once it clears .15, the low to mid .20s is not unreasonable in a short period of time (weeks).
Keep in mind, a cheap alt coin such as BAT is not the best choice for short time frame strategies like swing trades. This is one that we monitor for inventory accumulation for our longer term portfolio.
The point is this: now that the space seems to be showing early signs of optimism, capital will flow to the coins that are still relevant and worthwhile. And this activity can be found and monitored on larger time frame charts through the recognition of the right patterns. Before you pay for your alt coins, you really need to first pay “attention” what you are buying because we are entering a phase where the junk will be filtered out.
Quick Note: One day next week we are planning to conduct a trade review webinar. Since this will be our first one, we are going to invite our free members as well as paid. After that, these trade reviews will only be available to paid members. Make sure you are registered, and you will receive an invite by email soon.
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